Vietnam in shortVietnam has a complex history of colonialism, post WWII wars with France first, and between the North – supported by China and Russia - and the South, supported by the United States. North Vietnam’s victory in 1975 was followed by decades of embargo. It is a communist country, but while China’s economy is stagnating, Vietnam could start roaring. Jerome Bloch joined an economic mission there, led by Philipp Roesler.©DRHigh income company?
33 years old: The average age of the Vietnamese population which has 106 million people if you include an estimated 6 millions nationals living abroad. The key ambition of the country, following the Party’s quinquennial congress, is to become a “high income country” by 2045. This would require a 10% annual growth of GDP. For this, the country needs to nail massive infrastructure projects, which require high volumes of FDIs. Will this work? Noone knows. The official GDP growth in 2025 was 8% and unemployment is close to zero.Reforms
From the top of the “Landmark 81” tower, Ho Chi Minh city looks like Shanghai in 1990. A fast-growing city with huge amounts of land available. To unleash growth, the Government is engaging in strong reforms: it merged several Ministries and eliminated the “district” level of administration. And there are talks about appointing the Party leader as President, to follow the Chinese model. Is this creating the necessary “international Investor protection”? Well, press freedom is low, corruption is still high and bureaucracy can be a challenge. It is not recommended for example to go to court, as the power and justice are not yet fully separated.The awakening?
The world has become highly uncertain. Fast changing tariffs in the U.S. Massive debts levels and a far-right tide in Europe. But one thing is sure: right now, the whole Vietnamese population is avoiding any kind of fear for the future. You lose your job, you find another other. Huge conglomerates such as Vingroup are boosting the economy across construction, automotive and financial services. And most importantly, trade with Germany grew by 15% in 2024. So clearly, in the current context, Vietnam could become a major trading hub, especially with Europe.©Duke26
